PetroSun Issues Algae-to-Biofuels Product Update

PetroSun BioFuels, a wholly owned subsidiary, has been actively pursuing
feedstock supply agreements within the domestic biodiesel refining industry
to market the algal oil from its planned algae farms and algal oil
extraction plants. The Company has projected a minimum annual algal oil
production level of 180,000,000 gallons from the planned facilities in
Alabama, Louisiana and Arizona after their completion during 2008. The
Company will market the algal oil based on the posted price of crude oil.
At a crude oil price of $80 per barrel, the algal oil would wholesale for
$1.90 per gallon or twenty-five cents per pound. This example would
generate gross annual revenues of $342 million on the projected production
levels from the initial operating facilities.

The Company will also be capable of producing considerable tonnage per acre
of algae biomass, post algal oil extraction, that could be marketed as
livestock feed or processed into ethanol. PetroSun BioFuels estimates that
the annual sales associated from the biomass derived products could double
the annual income of its initial algae-to-biofuels operations.

About PetroSun

PetroSun's operations include oil and gas exploration, development and
production, algae-to-algal oil alternative fuels production and oilfield
services. The oil and gas division is focused on the exploration of the
Canning Basin of Western Australia and the Holbrook Basin of Arizona. The
Company will continue the development of oil and gas reserves in Louisiana.
The alternative fuels division is in the pre-commercial stage of the
algae-to-biofuels production technology. The Company plans to establish
algae farms and algal oil extraction plants in Alabama, Arizona, Louisiana,
Mexico, Brazil and Australia during 2007/2008. The algal oil product will
be marketed as feedstock to existing biodiesel refiners. The oilfield
services division is in the process of upgrading our capabilities to
support the exploration, development and production operations. PetroSun is
headquartered in Scottsdale, Arizona with field offices in Shreveport,
Louisiana and Opelika, Alabama. For more information about PetroSun visit
the company's website at http://www.petrosuninc.com.

Except historical matter contained herein, matters discussed in this news
release are forward-looking statements and are made pursuant to the safe
harbor provision of the Private Securities Litigation Reform Act of 1995.
These forward-looking statements reflect assumptions and involve risks and
uncertainties, which may affect the Company's business and prospects and
cause actual results to differ materially from these forward-looking
statements.